GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
• Group revenue grew year-on-year for the ninth consecutive quarter, reaching US$13.5 billion
• Pre-tax Income (PTI) grew 45% year-on-year to US$310 million
• Net income up 20% year-on-year to US$202 million
• Lenovo continues to be the world's #1 player in the global PC market with record shipments of 17.3 million units, including double-digit premium segments growth
• Software and services revenue* up 35% year-on-year to US$883 million
 
 
 
DUBAI, November 11, 2019:   Lenovo Group (HKSE: 992) (ADR: LNVGY) has announced Group revenue in the second quarter reached US$13.5 billion, the ninth consecutive, year-on-year quarter of growth. Pre-tax income grew 45% compared to the same quarter a year earlier, to US$310 million. Net income also increased 20% year-on-year to US$202 million. Revenue mix continues to be balanced across the company's four geographies (Americas, Asia Pacific, China, EMEA) with each reporting more than 20% share of revenue.
 
Basic earnings per share for the second quarter were 1.69 US cents or 13.23 HK cents. Lenovo's Board of Directors declared an interim dividend of 6.3 HK cents per share.
 
“During the quarter we were pleased to see our growth momentum deliver continued solid financial performance amidst a complex and dynamic global trading environment. This success is a testament to our commitment to innovation, to our customers across 180 markets around the world, and to how the world continues to embrace our vision to deliver smarter technology for all,” said Yang Yuanqing, Lenovo Chairman and CEO.
 
 
Global trade environment
 
 
Although global trade and geo-political uncertainties persist, they continue to have a negligible material impact on the financial performance of the company. This quarter's results highlight the consistently high degree at which Lenovo continues to perform. Lenovo's global footprint, flexible, majority-owned manufacturing base and ongoing strong financial performance remain competitive differentiators propelling the company's market-leading position. Going forward, Lenovo is well positioned to manage complex and dynamic market conditions, while continuing to deliver sustainable long-term results.
Business Group Overview
 
The strong results are led by the Intelligent Devices Group (IDG). The PC and Smart Devices Group (PCSD), one of the two IDG business units, reported US$10.7 billion in revenue and record PTI margin of 5.7%. Sales volume in PCs enjoyed strong growth year-on-year of 7.1%, resulting in overall PCSD revenue growth of 4.1% year-on-year. Pre-tax income was US$612 million, up US$97 million year-on-year.
 
In PCs, volume again outgrew the market, which is continuing to recover. Lenovo holds 24.4% of the global PC market, sustaining its position as the worldwide #1 in PCs. Growth came from high-growth and premium categories, including Workstation, Thin and Light, Visuals and Gaming PCs – all of which had double-digit volume growth year-on-year.  In the future the PCSD group will continue to drive premium-to-market growth and industry leading profitability as it continues to focus on customer insights to innovate across the portfolio.
 
IDG's second business unit, the Mobile Business Group (MBG), posted its fourth consecutive quarter of profitability and positive PTI, improving US$57 million year-on-year. While there was a small revenue decline reported year-on-year (5.7% to US$1.5 billion), the group continues to focus on inventory controls, portfolio efficiency and diligent cost controls to help expand margins. The company's Latin America stronghold continues to see revenue, profit and market share grow year-on-year.  In North America Lenovo moved up two places in the industry rankings from the previous quarter to number four. In addition, revenue continues to outgrow the market with profit continuing to improve. Going forward, Lenovo will continue its investment in its mobile business to drive ongoing and future growth opportunities in select new and profitable markets.
 
The Data Center Group (DCG) successfully navigated challenging circumstances during the quarter and reports its 9th consecutive year-on-year quarter of narrowing losses. Overall revenue in DCG declined 13.8% as a result of lower prices for key components and softness in demand from some of the largest hyperscale customers.  Revenue – excluding Hyperscale – grew almost 13% year-on-year with China reporting more than a 47% increase in non-hyperscale revenue compared to the same quarter a year ago. In addition, there was strong double-digit growth in Storage, Software Defined Infrastructure and High Performance Computing as a result of an expanded storage portfolio, strong ThinkAgile offerings and new HPC project wins.
 
Looking ahead, the data center group will continue its growth in non-hyperscale including fast-growing segments like SDI and storage, while also investing in new Edge, Telco and AI infrastructure opportunities.  The Hyperscale customer base is expected to expand and return to growth in the second half of this fiscal year.
 
 
Software and Services heading to US$1 billion business
 
 
Software and Services revenue* grew 35% year-on-year, reaching almost US$900 million. Device as a Services (DaaS), premier support service and managed services all grew significantly to contribute to this performance and ongoing diversification of the company's revenue streams.  This business is expected to exceed US$1 billion per quarter very soon.



Posted by : GoDubai Editorial Team
Viewed 4691 times
Posted on : Monday, November 11, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Sony Corporation records strongest operating income for Q2 FY2019
Next Story : Sophos Annual Threat Report Details Top Cyberattacks
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Chlo's Iconic Carlina Sunglasses In a Precious New Interpretation
Holiday Hair-Styling Essentials from VIERRO
Luxe Beauty Gifts for your Loved Ones this Festive Season
'Tis the Season to Be Glamorous - Beauty Essentials from GlamBeaute.com!
Arabic version of Zoho Creator launched to help businesses create custom applications
Homegrown Jewellery Brand Sumaya Bakkar Collections Curated Festive Gift List
Your Holiday Gift Guide for Her
Union Coop Pays Tribute to the Martyrs on Commemoration Day'
Berkan Steakhouse Launches in Dubai
ENEC Releases 'Tasamoh' a Rehabilitated Green Turtle and organizes Beach Cleanu...
China Homelife the Largest China Sourcing Platform Set to Showcase a Wide Variet...
Dubai Cares' Volunteers bring hope to children in remote village in Senegal
New year, New You with Lunette
Dubai Festival City Mall Visitors In for A Jolly Festive Season Like No Other in...
Uncovering the Beauty of Mechanics'
Cole Haan Makes Its Debut at Sole Dxb 2019 Showcasing Footwear Collaborations
Customs World inks MoU with Indonesia to roll out World Logistics Passport
Emotional and highly dynamic: the design of the MINI John Cooper Works GP.
The Middle East Organic Market's Premiere Business Event Opens In Dubai
Statement Cardigans
GROHE received the Red Dot: Brand of the Year
Free gold coins at Malabar Gold & Diamonds Festival.
Set Up Stylish Outdoor Spaces with 2XL Furniture & Home Dcor
Best Menswear Items
NYU Abu Dhabi Class of 2017 graduate Alioune Fall named as 2021 Schwarzman Scholar
Annual DIAC Conference examines impact of UAE Arbitration Law
Air Cargo Peak Season off to Slow Start, Annual Demand down 3.5% in October
Hyundai's all-new 2020 Sonata now available in the UAE
Emiratis and expats set off to a two-week Camel Trek across the UAE desert
Lewis Hamilton Tops Off Sixth World Title With Victory at Formula 1 Etihad Airwa...
Information City concludes "Al Saada" initiative
World Muslim Communities Council hosts first International Youth Forum in Abu Dhabi
ENEC welcomes visit by senior Emiratis to headquarters in Abu Dhabi
Abu Dhabi Airports awards retail spaces at Midfield Terminal to Lulu Group
Truesteam Technology by Lg is Setting A New Standard for Hygiene
1247 Media joins du to offer free unlimited WiFi UAE data to RTA taxi users
Abu Dhabi Digital Authority's TAMM' initiative awarded with the Sheikh Salem Al...
Give a cat a loving home
EASA extends Part 145 certification of SriLankan Engineering
Reuben Kipyego and Vivian Kiplagat Win 2019 Adnoc Abu Dhabi Marathon
Race Legend Back After Breaking Neck Sees More World Titles on the Way to Abu Dhabi
'Herman Miller and DIDI announce the winners of the Ergo Chair - Student Design...
DP World joins forces with Dubai Cares in giving a new facelift to Umm Al Qura S...
Federal Transport Authority inks MoU with International Maritime Organization in...
3rd Saudi Maritime Congress announced for March 2020
Pre-school launches initiative encouraging children to stay hydrated
Al Qemzi Claims Abu Dhabi Grand Prix Pole With Brilliant Surge
Arabian Automobiles INFINITI pledges the highest-quality certified pre-owned vehicles
Etisalat Misr tests 5G on commercial network with Ericsson